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Informist, Wednesday, May 6, 2026

By Shumaila Firoz 

MUMBAI – Karur Vysya Bank Ltd. is expected to report a strong on-year jump in its net profit for the March quarter on the back of healthy loan growth, stable asset quality, and benign credit costs, while sequentially, the bottom line is expected to fall due to mixed net interest margin trends and a rise in provisions, according to brokerages tracking the lender. 

The private-sector bank is expected to report a net profit of INR 6.60 billion for the reporting quarter, up nearly 29% on year and down nearly 5% on quarter, according to the average of estimates from eight brokerages. The bank is expected to report a net interest income of INR 12.68 billion for the March quarter, up over 16% on year and over 2% sequentially, according to the average of estimates.

Elara Securities (India) Pvt. Ltd. has the highest estimate for the bank's net profit at INR 7.01 billion and Kotak Securities Ltd. has the lowest estimate at INR 5.97 billion. SMIFS Ltd. has the highest estimate for net interest income at INR 12.90 billion and Emkay Global Financial Services Ltd.  has the lowest estimate at INR 12.34 billion.

The lender's net profit is expected to rise around 35% on year, supported by benign credit costs, according to SMIFS. "Overall, this supports our net profit estimate… implying growth of 34.8% YoY (year-on-year)", it said. Credit costs in the Indian banking sector have remained relatively benign due to a cumulative 125 basis points of repo rate cuts by the Reserve Bank of India's since February 2025.

Kotak Securities expects healthy on-year earnings growth, led by lower provisions and solid loan growth. "We expect a healthy 15% y-o-y (year-on-year) earnings growth led by lower provisions. Loan growth is solid at ~15% y-o-y while deposits grew ~15% y-o-y at better-than-industry trends," the brokerage said in its pre-earnings report. Meanwhile, YES Securities (India) Ltd. said, "Provisions will be higher on sequential basis."

The growth in the bank's net interest income for the reporting quarter is supported by loan growth and stable net interest margin. "NII (Net interest income) growth of ~18.5% YoY and 4.1% QoQ," is supported by a "modest NIM (net interest margin) expansion (of 4 bps sequentially)," the SMIFS said in its report. Meanwhile, YES Securities expects net interest income growth to be around the average loan growth of the bank as the rise in yield on advances matched the cost of deposits, with net interest margins seen broadly stable sequentially. Similarly, Kotak expects "NIM to be flat qoq (quarter-on-quarter) at ~4%." However, Equirus sees some pressure on margin. "NIM's likely to decline by ~5bps qoq as repo rates gets passed while CoD (cost of deposit) will likely remain flat qoq," the brokerage said.

The bank will announce its earnings for the quarter and year ended March on Thursday.

At 1130 IST, shares of Karur Vysya traded at INR 300.40 on the National Stock Exchange, up nearly 1%. The stock has risen over 13% since the company announced its December quarter earnings on Jan. 23.

Of the seven brokerage reports on the company available with Informist, all have 'buy' or equivalent recommendation on the stock, with an average target price of INR 323 per share. This is over 7% higher than the current market price.

Following are the March quarter earnings estimates for Karur Vysya Bank from eight brokerage firms in the descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee 

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